Texas 2023 - 88th Regular

Texas House Bill HB4890 Compare Versions

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1	1	88R4611 SHH-F
2	2	By: Shine H.B. No. 4890
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to installment payments of ad valorem taxes.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. The heading to Section 31.031, Tax Code, is
10	10	amended to read as follows:
11	11	Sec. 31.031. INSTALLMENT PAYMENTS OF [CERTAIN HOMESTEAD]
12	12	TAXES ON HOMESTEADS.
13	13	SECTION 2. Section 31.031(a), Tax Code, is amended to read
14	14	as follows:
15	15	(a) This section applies only to:
16	16	(1) an individual who is [:
17	17	[(A) disabled or at least 65 years of age; and
18	18	[(B)] qualified for an exemption under Section
19	19	11.13 [11.13(c)]; or
20	20	(2) an individual who is:
21	21	(A) a disabled veteran or the unmarried surviving
22	22	spouse of a disabled veteran; and
23	23	(B) qualified for an exemption under Section
24	24	[11.132 or] 11.22.
25	25	SECTION 3. Chapter 31, Tax Code, is amended by adding
26	26	Section 31.0315 to read as follows:
27	27	Sec. 31.0315. INSTALLMENT PAYMENTS OF TAXES ON CERTAIN
28	28	BUSINESS PROPERTY. (a) This section applies only to:
29	29	(1) real property that is owned or leased by a business
30	30	entity that had not more than the amount calculated as provided by
31	31	Subsection (f) in gross receipts in the entity's most recent
32	32	federal tax year or state franchise tax annual period, according to
33	33	the applicable federal income tax return or state franchise tax
34	34	report of the entity; and
35	35	(2) tangible personal property that is owned or leased
36	36	by a business entity described by Subdivision (1).
37	37	(b) A person may pay a taxing unit's taxes imposed on
38	38	property that the person owns in four equal installments without
39	39	penalty or interest if the first installment is paid before the
40	40	delinquency date and is accompanied by notice to the taxing unit
41	41	that the person will pay the remaining taxes in three equal
42	42	installments. If the delinquency date is February 1, the second
43	43	installment must be paid before April 1, the third installment must
44	44	be paid before June 1, and the fourth installment must be paid
45	45	before August 1. If the delinquency date is a date other than
46	46	February 1, the second installment must be paid before the first day
47	47	of the second month after the delinquency date, the third
48	48	installment must be paid before the first day of the fourth month
49	49	after the delinquency date, and the fourth installment must be paid
50	50	before the first day of the sixth month after the delinquency date.
51	51	(c) Notwithstanding the deadline prescribed by Subsection
52	52	(b) for payment of the first installment, a person to whom this
53	53	section applies may pay the taxes in four equal installments as
54	54	provided by Subsection (b) if the first installment is paid and the
55	55	required notice is provided before the first day of the first month
56	56	after the delinquency date.
57	57	(d) If the person fails to make a payment before the
58	58	applicable date provided by Subsection (b), the unpaid installment
59	59	is delinquent and incurs a penalty of six percent and interest as
60	60	provided by Section 33.01(c).
61	61	(e) A person may pay more than the amount due for each
62	62	installment and the amount in excess of the amount due shall be
63	63	credited to the next installment. A person may not pay less than
64	64	the total amount due for each installment unless the collector
65	65	provides for the acceptance of partial payments under this section.
66	66	If the collector accepts a partial payment, penalties and interest
67	67	are incurred only by the amount of each installment that remains
68	68	unpaid on the applicable date provided by Subsection (b).
69	69	(f) For the 2023 tax year, the limit on gross receipts under
70	70	Subsection (a)(1) is $7 million. For each subsequent tax year, the
71	71	comptroller shall adjust the limit to reflect inflation by using
72	72	the index that the comptroller considers to most accurately report
73	73	changes in the purchasing power of the dollar for consumers in this
74	74	state and shall publicize the adjusted limit. Each collector shall
75	75	use the adjusted limit as calculated by the comptroller under this
76	76	subsection to determine whether property is owned or leased by a
77	77	business entity described by Subsection (a)(1).
78	78	SECTION 4. Section 31.032(a), Tax Code, is amended to read
79	79	as follows:
80	80	(a) This section applies only to:
81	81	(1) real property that:
82	82	(A) [is:
83	83	[(i) the residence homestead of the owner
84	84	or] consists of property that is used for residential purposes and
85	85	that has fewer than five living units; [or
86	86	[(ii) owned or leased by a business entity
87	87	that had not more than the amount calculated as provided by
88	88	Subsection (h) in gross receipts in the entity's most recent
89	89	federal tax year or state franchise tax annual period, according to
90	90	the applicable federal income tax return or state franchise tax
91	91	report of the entity;]
92	92	(B) is located in a disaster area or emergency
93	93	area; and
94	94	(C) has been damaged as a direct result of the
95	95	disaster or emergency; and
96	96	(2) [tangible personal property that is owned or
97	97	leased by a business entity described by Subdivision (1)(A)(ii);
98	98	and
99	99	[(3)] taxes that are imposed on the property by a taxing
100	100	unit before the first anniversary of the disaster or emergency.
101	101	SECTION 5. Section 33.08(b), Tax Code, is amended to read as
102	102	follows:
103	103	(b) The governing body of the taxing unit or appraisal
104	104	district, in the manner required by law for official action, may
105	105	provide that taxes that become delinquent on or after June 1 under
106	106	Section 26.075(j), 26.15(e), 31.03, 31.031, 31.0315, 31.032,
107	107	[31.033,] 31.04, or 42.42 incur an additional penalty to defray
108	108	costs of collection. The amount of the penalty may not exceed the
109	109	amount of the compensation specified in the applicable contract
110	110	with an attorney under Section 6.30 to be paid in connection with
111	111	the collection of the delinquent taxes.
112	112	SECTION 6. The following provisions of the Tax Code are
113	113	repealed:
114	114	(1) Section 31.032(h); and
115	115	(2) Section 31.033.
116	116	SECTION 7. This Act applies only to ad valorem taxes for
117	117	which the delinquency date is on or after the effective date of this
118	118	Act.
119	119	SECTION 8. This Act takes effect January 1, 2024.